Jan 3, 2013

Indian Economy to Recover from Slowdown?

Indian economy will recover from the clutches of the slowdown. The GDP growth rate might project at 5.7 per cent for the fiscal year 2012-13, but it will revive its position from there, with help of some good economic reforms.

The UPA government has initiated the economic reforms, which are actually terms are 'need of the hour' and would boost the Indian economy.

Some tough decision like reducing sub-sidies on energy products would be consider to give a relief to oil companies from dipping further into losses. However, the hike in petrol or diesel prices, are going to affect the budget of common men.

The decision of such, would be against the people but necessary to keep up the growth momentum. The target set of 8 per cent growth rate for Indian economy in the 12th Five Year Plan is enough to indicate the possible economic reforms the government would consider to achieve it.

It is clear that in the year 2013, people might need to lose some extra money on their transport following further possible hike in the petrol and diesel prices.

The union budget 2013-14 will be tabled in Parliament in the month of February 2013, by the finance minister. It is speculated that the budget would aim for clear revive of economy from the clutches of economic slowdown.

On the other hand, if the trend of populist budget follows keeping the 2014 election, then the revival of India economic growth might be in trouble. Since, India will witness its mega election battle for Lok Sabha, in 2014 general election involving huge expenditure of government fund.

And subsidies may be high to keep all sectors happy,that also would weight high on Indian economy. There are two sides of coin, one side good economic reforms and the other side is to give plenty of subsidies to back into the power gain. There are options, lets wait and watch which side of the coin will fall, after toss.